A cache of documents provided by JPMorgan Chase & Co. catalyzed a significant investigation by British regulators into the connections between Jeffrey Epstein and Jes Staley, the former CEO of Barclays Plc, a London court was told. These documents, initially disclosed by JPMorgan to the Financial Conduct Authority (FCA) in November 2019, illuminated the depth of the relationship between Staley—a senior JPMorgan executive before joining Barclays—and the late financier and convicted sex offender Epstein.
The FCA probe began after JPMorgan informed the regulator about the existence of “various documents” that detailed interactions between Staley and Epstein. Following this revelation, the FCA demanded JPMorgan hand over the materials, which set the stage for an in-depth inquiry. Ultimately, the investigation led to Staley’s resignation from Barclays in 2021 and his permanent ban from the UK financial services industry.
Judge Timothy Herrington, presiding over the case, noted that the JPMorgan cache was pivotal in initiating the FCA’s actions. “This is what kicked everything off,” Herrington said during a Monday hearing at the London court, where Staley is appealing the FCA’s decision.
Neither JPMorgan nor Staley provided comments in response to recent developments.
JPMorgan, entangled in litigation over its relationship with Epstein, settled claims last year by agreeing to pay $290 million to nearly 200 victims of Epstein’s abuse and an additional $75 million to the US Virgin Islands. The bank denied liability in both cases but terminated a legal claim against Staley as part of the broader settlement.
The FCA case against Staley is anticipated to revisit much of the evidence presented during these lawsuits while shedding new light on the ties between Staley and Epstein.
Court documents unveiled on Monday highlighted a striking detail: Staley’s adult daughter, Alexa Staley, acted as an intermediary between her father and Epstein. This revelation challenges Staley’s previous assertion that he severed ties with Epstein upon becoming Barclays CEO in 2015. Documents referenced in the US litigation against JPMorgan had alluded to such intermediaries but had not identified them until now.
Staley’s continued correspondence with Epstein included exchanges of confidential information. For example, emails obtained in the JPMorgan lawsuits showed Staley seeking Epstein’s advice on sensitive matters, including his compensation negotiations with JPMorgan CEO Jamie Dimon. The FCA’s legal filing emphasized that such exchanges underscored “the closeness” of their relationship.
The FCA case, expected to go to trial in March, could feature testimonies from prominent figures, including Bank of England Governor Andrew Bailey and Barclays Chairman Nigel Higgins. This trial promises to be a pivotal moment, as it could further unravel the extent of Staley’s involvement with Epstein and its implications for financial oversight.
In their defense, Staley’s legal team has proposed calling several witnesses, including Mary Erdoes, the head of JPMorgan’s asset- and wealth-management unit, and Barclays’ current CEO, C.S. Venkatakrishnan, to provide their perspectives.
Epstein’s ties to JPMorgan span over a decade, during which he was a private banking client despite mounting concerns about his criminal activities. Internal compliance teams at JPMorgan repeatedly attempted to sever ties with Epstein, citing his association with sex trafficking and the exploitation of young women. However, their efforts were thwarted, in part due to Staley’s intervention.
Even after Epstein’s 2008 conviction for soliciting sex from a minor, he retained his client status, a decision attributed to Staley’s influence. It wasn’t until months after Staley left JPMorgan in 2013 that the bank finally terminated its relationship with Epstein.
Staley has consistently denied misleading regulators or the Barclays board about his relationship with Epstein. He maintains that his professional and personal ties with Epstein ceased long before his appointment as Barclays CEO. His resignation in 2021 followed an FCA investigation that concluded otherwise.
At the time, Barclays expressed disappointment at Staley’s departure but refrained from commenting further on the ongoing legal matters. Staley’s appeal against the FCA ruling represents his attempt to clear his name and challenge the narrative that has emerged around his connections to Epstein.
The case has broader implications for the financial industry, particularly regarding the accountability of senior executives and the responsibility of institutions in vetting and managing client relationships. It raises critical questions about corporate governance, compliance oversight, and the role of personal relationships in high-stakes financial dealings.
As the trial approaches, the financial world will closely watch how the revelations shape the regulatory landscape and influence future measures to prevent similar scandals. The enduring fallout from Epstein’s crimes continues to ripple across industries, ensnaring those who, directly or indirectly, were linked to his operations.
